Chelsea Mould of Transfers & Financial Stability
This is a summary. Click through to read the full story, Chelsea transfer ban explained – The facts, the saga and the courtroom drama, Chelsea spending, financial fair play and Does the youth policy matter? Chelsea ha haves been has been banned from signing players for two transfer windows after breaking FIFA rules. Chelsea transfer analysis: 2019 summer window. It’s a ban that could flip the script on their summer, their season and maybe even their future.
Key Themes:
Ever-increasing transfer spending: Chelsea is one of the most aggressive clubs in the transfer market despite already making huge acquisitions.
Player Sales: Players are a value and as we look to comply to meet FFP and balance the books, it’s even more crucial that we let the right players go at the right time.
Profitable Tournament Earnings: Competing and luck in competitions like the Champions League or Club World Cup will bring in much more money than you’ll ever spend on transfers.
Long-term contracts: Long-term contracts are something which Chelsea still relies heavily on for the financial model of new player acquisitions.
Financial Fair Play: F Hazard is a player who could be written off to fall in line with FFP.
Most Important Ideas/Facts:
- Continued High-Profile Signings:
Chelsea have had some blockbuster signings in recent times. The latest is Jamie Gittens, whose signing from Borussia Dortmund cost £48.5 million, which could increase by as much as £3.5 million in performance-related payments. That’s after Gittens “told both Manchester City and Manchester United to shelve their hopes of signing him this summer as he’s focused on a switch to Chelsea.” He’s been signing a 7-year contract. It’s Chelsea’s policy to spread transfer fees over as long a time as possible. Glad to have helped. That comes after two recent acquisitions out of Liam Dilap and Joao Pedro at Brighton. - The Half and Half Selling of Players by Fiscal Stitch-Up:
Even amid his spending spree, Chelsea are still mid-table in what is UEFAs crackdown on financial fair play. “Medical tests, player registration and having to work to keep on budget has Chelsea officials operating flat happy,” says the source, adding: “The agreement they’ve agreed with UEFA also means Chelsea will be restricted as to how many players they can register for the Champions League next season – unless they get their spending (by pushing players out) under control. “So they will have to sell players as well as buy players. It’s “fully expect[ed] to see quite a few players leaving Chelsea over the next couple of weeks.”
- Significant Revenue Generation from Tournaments:
Chelsea money can afford to do so though, after the massive amounts they brought in from those big tournaments.
Champions League: Qualification for next season’s Champions League would likely bring “an extra hundred million pounds or so in revenue next season.”
Club World Cup: “It’s going to be very very rewarding indeed to take part in the Club World Cup.”
Chelsea have already banked “about £61m” from making the semi-finals.
Winning the semi-final, a match that could bring “another 23 23 12 million pounds up against it.”
Were he to win the final, it would also “mean an extra 30 million pounds.”
All told, if Chelsea won the Club World Cup, this one tournament could have meant “more than 100 million pounds” to the club, according to reports. - Controversy Regarding Financial Advantages:
Other Premier League clubs have scoffed at the riches available from tournaments such as the Club World Cup. These clubs are saying, “That’s a little unfair, uh, Chelsea are getting all this additional money that there’s uh no way for us to generate. Chelsea and another beneficiary, Manchester City, argue that they “qualified” to play in the club World Cup. … because in the last four years, we have been the winners of the Champions League, and that is why we had access uh to play in this new FIFA competition.
- Ongoing Financial Fair Play Scrutiny:
The wallet of Chelsea is already wagging. Just in case anyone is interested, the source does make mention of “a UEFA fine yesterday”, indicating they’ve done this before or they are afraid. Why do they have to ‘balance their transfer spending’?? This is why – the never-ending demand of the rules that underpin Chelsea and force them to walk a tightrope between being ambitious with their spending, and being compliant.